WRKO>Audio & Video on Demand>>Boston Globe's Erin Ailworth on the latest with A123 Systems

Boston Globe's Erin Ailworth on the latest with A123 Systems

Jan 9, 2013|

Boston Globe's Erin Ailworth on the latest with A123 Systems

Transcript - will not be 100% accurate

And 28 year happy financial exchanged -- not a million or Barry Armstrong. Alongside June that night and do a lot of listeners pretty interested. And a lot of these new phones that are coming out. Can you get somebody that says so the iPhone and the iPad is an overpriced iPod Touch from the 617. Respectfully disagree you make a phone call from your iPod Touch. Didn't think so is it worth an extra 400 dollars don't know either acting you face time on that iPod Touch you can. Can you really can't look at I decided I had amenable. I'm glad I'm asking that's why I'm asking. And that -- six. Once again. -- did not know that do not have enjoyed my dad has a Droid. Loves it does -- like. He's got -- W -- -- app in there and he had to download form Christmas -- -- -- -- into the -- it's interesting my dad actually he's got the he has the iPhone and then for Christmas this year he got a a Kindle fire. And he actually returned it within two days exit donors Indian affairs and wanna go back to the apple. Ordered himself an iPad was ready to go after now that is interesting and then what is this. A 97 Asus Lenovo has a new tablet it's huge. And they told to check it -- as our producer Dave said and away. So. Online -- coming up we are going to be joined by fairy tale worth from the Boston Globe talking about that controversial. Sale. Of a 123 systems will be talking about that when we come back. And again we still do have that gas card hanging out there somewhere so stick around on the financial exchange. It's degrees highs in the upper forties on -- I don't York. News some breaking news out of New York dozens of people heard following a ferry accident in New York's lower Manhattan. The New York fire department says that nearly sixty people suffered injuries to passengers. Serious and at least five have moderate injuries while the other fifty are minor including some bumps and bruises. Federal health officials warning Americans that this year's flu season it's shaping up to be the worst in a decade. And we've got about six more weeks ago and hasn't peaked yet 41 states already reporting flu cases were brought to -- centrum flavor versed. There's fruit flavored multi vitamin chew with essential nutrients you need his attention dot com your two dollar coupon today I'm June night WRKO news. This is an important announcement for Americans -- -- over the age -- 65 -- -- parents over the age -- 65 congressional research services reports Medicaid spending -- long term care has grown -- an average annual rate of six point 5% in 1995. The Congressional Budget Office reports that federal Medicaid spending will increase from 73 billion dollars in 2012. To one point 148 -- -- -- -- 21 the CBO is currently considering changing the -- -- bacteria on Medicaid trust from five -- years in -- the Congressional Budget Office is considering a reduction in your home -- exemption from 750000. Dollars all the way down to a -- 50000 dollars -- -- -- -- at 781. 5349555. The time to implement your Medicaid plan is right now. Do it before the laws changed 7815349555. That 7815349555. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- We're back we. The financial exchange on the WRKO. Radio. Welcome back to the financial exchange channel and a little back to the future right now -- a lot of filling in at four Barry Armstrong. Alongside -- June night and you remember. That over the last couple years one of the most watched companies has been a 123 systems they are a battery maker. Based out of Waltham. That is now unfortunately undergoing a a bankruptcy sale to a Chinese conglomerate and joining us right now to talk about that sale is Aaron -- wars from the Boston Globe and Aaron. How are you this morning. I'm pretty good how are you -- Doing pretty -- also. They want to three that they're pretty close to having this 257. Million dollar deal closed at this point but what is going on now with this deal where exactly is the hang up here. Well now they are going -- what's called EE EU and the committee on foreign investment in the United States. And I don't carry out -- water. A lot of companies that put them -- and this current unit linked for. Did -- deal where aid board accompany or -- and it is going EU potentially acquire and the mayor and they. And though because they want -- buyer. Young age and our park in Guam aren't they are going Serbia and what you've done is they basically look at me and -- and they say in their national security. It it's not a patent not out on ill there and they try to make -- and if they can't figure it out they use the president. Now they want you three systems that they attracted so much scrutiny because they they did get eight horn of government aid they got millions of dollars. In taxpayer dollars that essentially were given to help develop these battery systems. -- also did have a small defense business along side of this so are those two causes for concern when looking at this deal. Well they agree it's now. Want to -- getting. Apparently it -- entry Merkel are getting nearly all of the court ordered XX. But they are meeting behind it want Brees is at -- and -- military contract. Those are going to view an Illinois company op art magnet and get -- and I. Not in dollar deal on them I don't if they're doing a black that should be the right number and right new way related note that -- a parent -- exactly why. It is reviewing it. Net -- this panel. It's obviously made up of a number of folks do you have any insight into who exactly sits on this and what some of the criteria they look at in terms of approving or rejecting these deals. Yet -- and that would de EE by the big government a lot of -- that -- that count but it's a panel of nine standing member and it chaired by the secretary of treasury. Made up now include members I am calmer. Is and I think straight record -- and act. And about other men. Other federal agencies can also hit an odd odd it is not as well and I don't. Not because of what -- got national security a lot of this past eight played behind closed door and it kept quite confidential. Now in and did exactly you know how they decide. We noted that their primary focus is national security or not could be talking about ego. Commercial policies or politics it's just be -- this all. Eight national security. Talking with -- -- -- from the Boston Globe about the sale of a 123 systems to a Chinese conglomerate and an -- How common is it for companies to go through this process because it seems like. There are a number of companies that get sold off internationally on an annual basis but we don't hear about it that often. That prospect. Is very secretive. About that occurred occurred at. Do you like that it's voluntary that a lot of people -- -- -- and go ahead at 8 o'clock at all. Order you in the -- ballot. And it doesn't think you're 2011 they reviewed more than 608 and ending at six under that Ahmad. They approved the vast majority of that only a hand ball -- have been -- The president and and you know President Obama. Recently. I blocked. Blocked it deals like this for the first time in twenty years -- comment -- in 08 Il not to go. And Aaron obviously this has been in the news for quite some time now but. How long do you expect to take this to resolve itself at this point given where they are having essentially agreed to this deal but still trying to sort out the logistics and whether or not they will approve -- how much longer do you think this is going to be up for review at this point. Well why don't work is there an initial thirty day review that that the -- go back regarding -- Now -- at all could be tied. You know what are the true or not or whether Eric -- that need to be addressed. And that there -- secondary. 45 day investigation. That they can put it certainty it -- they feel that they need it. That's where able to -- is right now from my understanding. And and then. By -- important we're nearing the end of that hearing today they say they expect it to eight and by late January. You know I'm like ticket that you the president four crew -- that yet another is indeed eager. Already well Aaron certainly appreciate incident into this I know it's a company that has fascinated a lot of folks. Around Massachusetts over the last couple years seeing what has unfortunately happen with them so thank you again for the update and certainly we'll keep and sign them as we look for this deal to move towards completion. All right that was -- L -- from the Boston Globe. Engines the company that we've talked about a lot on this -- Barry has done analysts. And it seems like we've really seen them kind of from their -- all the way now to unfortunately thereby would you call this. Say a year ago or so that was an obvious it's this is a very difficult situation to predict in a lot of cases simply because. You you really just don't know how stable a lot of these companies are that are so reliant on outside funding and even even companies that are. You see it end up at 8123 was necessarily participating in any fraud or anything. But it's a case where it's very difficult even with companies that aren't getting outside assistance. To see what's going on especially in those early start of stages have been a number of stories over the last couple years in particular. Out of China the company see you know forest comes to mind as well as a couple of the companies out of China that have had some serious issues like this. In those first few years after they become publicly traded companies so it's it's a case where. Is that a red flag mean is it a red flag if you're getting money -- funded funding from outside -- -- -- -- of companies that do very well. Having gotten government funding there are also plenty of companies that don't do very well and I think one thing that is unfortunate is that in such a politically charged environment. It's very -- that point the finger and say you shouldn't have given money to then you shouldn't have given money to them well in hindsight we all get a 100% of our. Of our investments right in reality. You don't get a 100% right even the best hedge funds even the best private equity funds he signaled any kind of thing right company like this a 123. May be. Giving it another shot. Or maybe starting its -- is similar -- -- gonna be tough for those founders took to get the same type of funding they did simply because. Of the negative strike against them already so. I think you're gonna see similar types of companies coming on board I think you're going to see similar backing I think you will continue easy public and private backing for these types of companies. But again investors and taxpayers unfortunately need to realize that not every investment. Is going to work out I think we do need to be more careful about where we do investigate that -- percentage up a little bit more. And maybe start scaling down the dollars that we are giving out. You're always don't have companies that don't work out that's just the nature of the rest of it is that it's an animal -- anyone else who otherwise has never invested right so. Coming up we are going to be talking about one thing to look out for if you are looking for a job -- job listings and also. Lance Armstrong turning to a close friend to possibly. Come out with a big admission that is coming up next right here on the financial exchange.